Permanent TSB rejects criticism of buy-to-let loans

Permanent TSB rejects criticism of buy-to-let loans

 

Permanent TSB has rejected suggestions it is squeezing family homebuyers out of the market by launching a range of new products aimed at the buy-to-let sector.

The bank is offering a range of products with interest rates based on the size of the deposit that the buyer is bringing to the transaction.

It is also offering a new product to Irish people living overseas who wish to invest in property in Ireland.

PTSB Head of Mortgages Ger Mitchell said investors were looking for a very different type of property to the type being sought by those looking to purchase a family home.

Speaking on RTÉ’s Morning Ireland, he said: “Investors are already active in the market.

“There’s a very healthy rental market with 470,000 people in rental accommodation at the moment. Investors are typically looking at purchasing apartments or duplexes”.

He acknowledged that there would be a cohort of overseas buyers who would look to purchase family homes with a view to coming back to live in Ireland.

Mr Mitchell rejected suggestions that the bank was adding to the mortgage arrears problem, which is most acute in the buy-to-let sector.

“This has been a significant problem for people who bought at the top of the market, but there has been a considerable correction in house prices.

“There are a lot of suitable properties for investment available at a suitable price,” Mr Mitchell said.

 

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